Feeds

Icahn builds Yahoo! stake

Activist investors at the gate

Designing a Defense for Mobile Applications

Carl Icahn has quietly built up a four per cent stake in Yahoo! since Microsoft withdrew its offer for the company.

Icahn has a history of launching proxy bids for companies he considers have lost their way. In April he won two seats on Motorola's board. His main demand, that Motorola sell off its handset business, was accepted by the company in February and it is still seeking a buyer.

But Icahn may have a tougher job doing the same at Yahoo!. Presumably Icahn wants to force Yahoo! to accept Microsoft's offer for the company, but Ballmer has made no public commitment to return to the negotiating table. In fact Ballmer's letter explicitly ruled out a proxy contest because: "Our discussions with you have led us to conclude that, in the interim, you would take steps that would make Yahoo! undesirable as an acquisition for Microsoft."

Icahn would need other investors on his side to force Yahoo! back into discussions. The Wall Street Journal quotes anonymous sources that Icahn is still to win over other investors or get a promise of a repeat offer from Microsoft.

He will need to make any decision quickly. Yahoo!'s shareholder meeting is 3 July, which means the deadline for proposing rival candidates for the board is 15 May - tomorrow.

Some institutional investors have already made clear their distaste for Yahoo!'s chief executive Jerry Yang, either by publicly criticising him or by joining a class action case, this being launched back in February when Microsoft's offer was first rejected. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.